Mr. Michael Hodgson reports

PALITO BROWNFIELD EXPLORATION UPDATE

Serabi Gold PLC has provided an exploration update from its Palito mine in the Tapajos region of Para state, northern Brazil.

Highlights:

• Underground drilling into the G3 vein has demonstrated continuity of strong mineralization below the current mined areas with intercepts including:
  • 1.3 metres at 44.75 grams per tonne (g/t) Au (gold) from 337.85 metres (PDD0557);
  • 0.55 metre at 45.2 g/t Au from 190.6 metres (PDD0590);
  • 0.9 metre at 23.33 g/t Au from 286.3 metres (PUD0786);
  • 0.75 metre at 24.92 g/t Au from 230 metres (PUD0825);
  • 0.5 metre at 32.11 g/t Au from 238.1 metres (PUD0827).
• G3 has historically been a significant contributor to Palito's production, with approximately 65,000 ounces mined from surface to a vertical depth of approximately 300 m and over approximately 800 m of strike.
• The current drilling campaign is focused on testing a panel of potential mineralization of approximately 300 m by 600 m that represents an extension of G3 to the northwest and down dip. Drilling planned for 2024 will test an additional southerly extension panel of approximately 500 m by 500 m.
• Good progress is being made with the independent mineral reserve and resource estimate, although it has been decided to include the current round of G3 drilling, which will cause a delay in the completion of the estimate into the third quarter.

Mike Hodgson, chief executive officer, said: "Underground drilling at the Palito mine continues to deliver excellent results. The G3 vein was a major source of gold production for much of Palito's earlier mine life, with the benefit of also being one of the widest orebodies. With the deepening of other sectors within the mine, and particularly Palito West and Chico da Santa, which are the sectors either side of the Palito Main zone, within which G3 occurs, drilling out the deeper portions of G3 is now becoming possible.

"In 2023, we plan to complete the drilling of the northwest extension of the G3 vein, an area of approximately 300 m of vertical extent and approximately 600 m of strike. We also expect to be in a position to drill out the southeast extension of G3 in 2024, a panel with a vertical extent of approximately 500 m and strike of approximately 500 m.

"Given the success of the drilling, we have taken the decision to include these latest results within the forthcoming mineral reserve and resource estimate. This will cause a short delay in completing the estimate, although we still hope to have it completed in the third quarter."

Results

The G3 vein is situated within the Palito Main zone of the Palito mine and has historically been one of the most important sources of gold production with good continuity of width and grade. In total, it is estimated that 65,000 ounces of gold has been extracted from the G3 vein. Mining ceased when a fault structure was encountered, with limited drilling below this fault to justify further development.

With mining in the parallel sectors of Palito West and Chico da Santa extending to depth, it has been possible to position drill rigs to drill test the depth and lateral extent of the G3 vein. The drill results demonstrate that mineralization continues strongly below the fault, although in places the fault can cause a minor off-set in the vein.

These results support the decision to advance development to lower levels in the northwest of the G3 vein. Further drilling planned for 2024 should enable the southeast extension of G3 to be tested.

The information contained within this announcement is deemed by the company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014, as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged for the release of this announcement on behalf of the company was Clive Line, director.

Assay results

Assay results reported within this release include those provided by the company's own on-site laboratory facilities at Palito and have not yet been independently verified. Serabi closely monitors the performance of its own facility against results from independent laboratory analysis for quality control purpose. As a matter of normal practice, the company sends duplicate samples derived from a variety of the company's activities to accredited laboratory facilities for independent verification. Since mid-2019, over 10,000 exploration drill core samples have been assayed at both the Palito laboratory and certified external laboratory, in most cases the ALS laboratory in Belo Horizonte, Brazil. When comparing significant assays with grades exceeding one g/t gold, comparison between Palito and external results record an average overestimation by the Palito laboratory of 6.7 per cent over this period. Based on the results of this work, the company's management are satisfied that the company's own facility shows sufficiently good correlation with independent laboratory facilities for exploration drill samples. The company would expect that in the preparation of any future independent reserve/resource statement undertaken in compliance with a recognized standard, the independent authors of such a statement would not use Palito assay results without sufficient duplicates from an appropriately certificated laboratory.

Qualified persons statement

The scientific and technical information contained within this announcement has been reviewed and approved by Mr. Hodgson, a director of the company. Mr. Hodgson is an economic geologist by training with over 30 years of experience in the mining industry. He holds a BSc (hons), geology, University of London, an MSc, mining geology, University of Leicester, and is a fellow of the Institute of Materials, Minerals and Mining and a chartered engineer of the Engineering Council of U.K., recognizing him as both a qualified person for the purposes of Canadian National Instrument 43-101 and by the Alternative Investment Market Guidance Note on Mining and Oil & Gas Companies dated June, 2009.

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